Dick’s Sporting Goods to buy Foot Locker for $2.4 billion

Dick's Sporting Goods location
Dick's Sporting Goods FILE PHOTO: Dick's Sporting Goods has inked a deal to buy struggling Foot Locker. (Tada Images - stock.adobe.com)

Dick’s Sporting Goods is branching out, buying struggling retailer Foot Locker for $2.4 billion.

Dick’s Sporting Goods said it will plan to run Foot Locker and it’s other brands as standalone components, The Associated Press reported.

Kids Foot Locker, Champs Sports, WSS and atmos were all under the Foot Locker umbrella.

There will be 2,400 Foot Locker and associated branded stores in about two dozen countries, CNN reported.

It will be the first international foray for Dick’s Sporting Goods. The company has about 700 stores in the U.S.

“Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases,” Dick’s CEO Lauren Hobart said.

Dick’s is already the largest sports retailing chain, and along with the namesake stores, also operates Golf Galaxy locations, The Wall Street Journal reported.

One speedbump to the deal may be the looming tariffs since about 99% of shoes and sneakers are imported, typically from China and Vietnam, CNN reported.

Foot Locker’s stock had fallen after the announcements of tariffs and was still 40% down this year as of closing on Wednesday, The Wall Street Journal reported.

This is the second sports shoe company that has been purchased in recent weeks. 3G Capital bought Skechers for more than $9 billion and is taking the brand private.

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